BAWAG Group AG · VIE:BG
BAWAG — Shareholder Meeting (May 2018)
19 slides from BAWAG's shareholder meeting presentation, May 7, 2018
Slide 1: BAWAG Group Annual General Meeting 2018
BAWAG Group Annual General Meeting 2018 7 May 2018 | BAWAG Group AG 1
Slide 2: Managing Board of BAWAG Group
Managing Board of BAWAG Group Anas Abuzaakouk David O’Leary Chairman of the Managing Board Member of the Managing Board Chief Executive Officer Head of BAWAG P.S.K. Retail Enver Sirucic Sat Shah Member of the Managing Board Member of the Managing Board Chief Financial Officer CEO of easygroup Stefan
Slide 3: BAWAG Group at a glance
BAWAG Group at a glance Overview Key strategic pillars • One of Austria‘s leading omni-channel retail 1 banks … more than 2.5m customers & solid market Growth in our • Focus on growth in DACH region and shares core market developed countries • Major player in the Austrian direct banking market throu
Slide 4: BAWAG Group compared to other banks
BAWAG Group compared to other banks Return on equity (@12% CET1) Cost-income ratio 16.7% 15.3% 10.4% 65% 68% 5.9% 62% 59% 4.7% 4.2% 42% 43% BAWAG P.S.K. Austrian Peers German Peers Nordic Peers ECB Peers EU Peers BAWAG P.S.K. Austrian Peers German Peers Nordic Peers ECB Peers EU Peers BAWAG Austrian
Slide 5: Achievements in 2017
Achievements in 2017 Record profit before tax of €517m … Continued to build-up customer franchise … RoTE (@12% CET1) of 17.9% … strong capital ongoing investments in technology also to position with CET1 ratio (FL) of 13.5% drive digitalization Organic & inorganic growth in DACH region … IPO success
Slide 6: Financial performance in 2017
Financial performance in 2017 Highlights Details • Profit before tax of €517m, up 12% vPY … RoTE (@12% CET1) of 17.9% Profitability • Net interest income up 8% vPY, net fee and commission income up 12% vPY • Operating expenses of €529m … including new acquisitions and LTIP1) Costs • Cost-income rati
Slide 7: All 2017 targets outperformed
All 2017 targets outperformed Performance 2017 target Performance 2017 target Profit before tax | € millions Cost-income ratio 517 44.8% 46.5% 461 >€500m 41.6%1) <43% 2016 2016 2017 2017 2016 2016 2017 2017 RoE (@12% CET1) CET1 ratio (FL) 16.5% 15.3% 13.6% 13.5% >15% >12% 2016 2017 2016 2017
Slide 8: Customer segment performance
Customer segment performance Business performance Contribution Segment | € millions to Group return levels Profit before tax PBT Post-tax 2017 vPY 2017 RoTE1) Segment overview €1.4b new originations … continue to grow BAWAG P.S.K. Retail 225 33% 43% >20% key products €0.5b new originations … PayLife
Slide 9: Major P&L & balance sheet items
Major P&L & balance sheet items Profit before tax €517m +12% Total assets €46b +16% Customer Core revenues €1,008m €31b +9% loans +8% Customer IFRS equity €3.6b +16% €31b +19% deposits 7 May 2018 | BAWAG Group AG 9
Slide 10: P&L details – core revenues
P&L details – core revenues Core revenues Highlights € millions NII NCI NIM • Net interest income (NII) up 8% vPY 2.32% 2.23% ‒ Focus on core retail lending products ‒ Integration of new acquisitions 1,008 925 • Net commission income (NCI) up 12% vPY 217 193 ‒ Increase in income from current account
Slide 11: P&L details – operating expenses
P&L details – operating expenses Operating expenses Highlights € millions OPEX One-offs Cost-income ratio • Continued focus on operating efficiency … digitizing processes and integrating new acquisitions 44.8% 41.6%1) • Cost base includes pro-rata new acquisitions (Südwestbank and PayLife) and cost
Slide 12: P&L details – risk costs
P&L details – risk costs Risk costs Highlights € millions Risk costs Risk costs / Loans and receivables • Proactive risk management and maintaining a 0.18% conservative risk profile 0.15% 62 • NPL ratio at 2.0% (excl. City of Linz case: 1.5%) ... favorable risk metrics across business segments 43 •
Slide 13: Strong capital base
Strong capital base CET1 capital (FL) Highlights € billions CET1 capital (FL) CET1 ratio (FL) • Very strong capital levels, with … ‒ CET1 ratio (FL) significantly above target and 13.6% 13.5% stable vPY, post two major acquisitions in 2017 (Südwestbank and PayLife) ‒ interim dividend payment in Q3 ‘
Slide 14: P&L & balance sheet overview
P&L & balance sheet overview P&L | € millions 2016 2017 vPY Balance sheet | € billions 2016 2017 vPY Net interest income 732.2 791.3 8% Customer loans 28.5 30.8 8% Net commission income 192.9 216.9 12% Securities and bonds 6.5 8.4 29% Core revenues 925.1 1,008.2 9% Credit institutions and cash 2.7 4
Slide 15: Key future business drivers
Key future business drivers 1 4 Grow organically into our “market share Maintain fortress balance sheet & solid entitlement” in core retail products risk management 2 5 Proactive move towards technology Pursue M&A growth across DACH region company infrastructure applying successful BAWAG P.S.K. appr
Slide 16: Branch transformation
Branch transformation Targeted branch network Details • Target network of ~100 branches generating >75% of new business activity … geared toward market growth Full service branches • 80% of customers minimally affected Focuses • Invest in branches designed for today’s customer expectations (advisory
Slide 17: Pursue M&A growth across DACH region
Pursue M&A growth across DACH region Acquisition track record M&A strategy signed Deutscher Ring • We believe consolidation will occur in Austria and Q4 ’17 Bausparkasse AG across the European banking landscape at varying speeds closed • Primary focus on DACH region and select Q4 ’17 opportunities i
Slide 18: Management targets
Management targets Metrics 3-year targets 2018 targets >5% CAGR and >€600m in 2020 Profit before tax >5% annual growth >€5.70 pre-tax average earnings per share Cost-income ratio <40% <46% Return on tangible equity 15% to 20% >15% (@12% CET1) Capital ≥12% CET1 ratio (FL) ≥12% CET1 ratio (FL) Total e
Slide 19: Important Disclaimer
IMPORTANT DISCLAIMER: This presentation is prepared solely for the purpose of providing general information about BAWAG Group, Wiesingerstraße 4, 1010 Wien. The information does not constitute investment or other advice or any solicitation to participate in investment business. This presentation doe